The aging of one of the country’s largest generations, Baby Boomers, will have a lasting impact on the automotive market, especially because Millennials and Generation X are not taking to automobiles or the open road in as great as numbers as Boomers did. The silver lining here is that Boomers are not their father's generation. They expect to continue driving long into their later years. The challenge here is for automakers to develop models that cater to the specific needs of this aging population, without alienating them or younger cohorts.

1. Car Buying - US - February 2013
The aging of one of the country’s largest generations, Baby Boomers, will have a lasting impact on the
automotive market, especially because Millennials and Generation X are not taking to automobiles or the open
road in as great as numbers as Boomers did. The silver lining here is that Boomers are not their father's
generation. They expect to continue driving long into their later years. The challenge here is for automakers to
develop models that cater to the specific needs of this aging population, without alienating them or younger
cohorts.
Colin Bird, Automotive Analyst
Some questions answered in this report include:
How should manufacturers and dealers address the impact on the car-buying landscape of aging Baby
Boomers? How can dealerships change to improve their poor perception among car buyers?
table Of Content
scope And Themes
what You Need To Know
definition
data Sources
sales Data
consumer Survey Data
advertising Creative
abbreviations And Terms
abbreviations
terms
executive Summary
the Market
figure 1: U.s. Unit Sales Of New Vs. Used Vehicles, 2007-12
market Factors
release Of Pent-up Demand Creates Short-term Boost In New Car Sales
figure 2: Total New Vehicles Sold, New Cars Vs. Light Trucks, 2007-12
aging Us Car Parc Will Impact Sales Of New And Used Cars
figure 3: Average Age Of Cars, Light Trucks And Total Light Vehicles, 1995-2011
total U.s. New Car Dealership Network Grows For First Time In Seven Years
figure 4: Number Of Dealerships Selling New Cars, 2003-12
key Player
top 10 Automakers Account For 92% Of 2012 New Vehicle Sales
Car Buying - US - February 2013

2. figure 5: Largest Automotive Original Equipment Manufacturers In The U.s., By New Car Market Share,
2012
cpo Sales Seen As Important Profit Center For Dealers And Carmakers
figure 6: Largest Automotive Certified Pre-owned Retailers In The U.s., By Cpo Market Share, 2012
the Consumer
the Average Shopper Expects To Spend Five And A Half Weeks Shopping
figure 7: How Much Time Expected To Spend Shopping For Car, November 2012
new Car Shoppers And Used Car Shoppers Expect To Visit Different Online Resources
figure 8: Online Sources Expected To Visit While Car Buying, By New/used (non-cpo)/cpo Vehicle
Ownership,
november 2012
one In Five Millennials Expects To Use A Smartphone Or Tablet App The Next Time They Shop For A Car
figure 9: Online Sources Expected To Use While Car Buying, By Generation, November 2012
two Thirds Of Respondents Say Car Buying Is “stressful”
figure 10: Car Buying Habits And Sentiments, November 2012
minorities More Interested In Car Dealers Aesthetic And Convenience Features
figure 11: Importance Of Selected Dealership Attributes And Services, By Race/hispanic Origin, November
2012
what We Think
issues In The Market
aging Baby Boomer Population Will Change The Car Buying Landscape
car Dealerships Almost Universally Distained By Car Buyers
insights And Opportunities
community Car Sharing Could Foster Incremental Sales For Dealers And Automakers
lessons From Emerging Economies And Making Car Purchase An Exercise In Credit Building
trend Application
trend: Totophobia
trend: Experience Is All
2015 Trends
access Anything, Anywhere
market Size
key Points
u.s. Vehicle Sales Reach 14.5 Million Units, The Highest Volumes Since 2007
figure 12: U.s. Unit Sales Of New Cars And Light Trucks, 2007-12
Car Buying - US - February 2013

3. market Segmentation
key Points
new Cars Vs. Trucks
passenger Cars Make Up Majority Of Light Vehicle Sales For First Time Since 2009
figure 13: U.s. Unit Sales Of New Cars Vs. Light Trucks, 2007-12
slow Growth Of Crossovers And Full-size Pickup Trucks Diminish Role Of Light Trucks
figure 14: U.s. Unit Sales Of New Light Trucks, 2007-12
passenger Car Sales See Strong Gains As More Buyers Flock To Midsize And Compact Cars
figure 15: U.s. Unit Sales Of New Cars, 2007-12
new Vs. Used
new Cars Increase As A Proportion Of Market As Tight Used Car Market Creates Pricing Pressure
figure 16: U.s. Unit Sales Of New Vs. Used Vehicles, 2007-12
figure 17: U.s. Average Vehicle Selling Price, 2006-11
cpo Sales Seen As Important Profit Generator For Dealers And Carmakers
figure 18: U.s. Unit Sales Of Cpo Vehicles, 2007-12
market Drivers
key Points
improving Macroeconomic Conditions To Positively Impact Auto Sales
figure 19: Average Credit Score Of New Vs. Used Car Buyers, 2007-12
figure 20: University Of Michigan Consumer Sentiment, 2007-13
figure 21: Housing Starts Vs. Light Truck Sales, 2000-12
market Uncertainty Fuels Pent-up Demand
aging U.s. Car Parc Provides Challenges For New Car Sales Growth
figure 22: Average Age Of Cars, Light Trucks And Total Light Vehicles, 1995-2011
cash For Clunkers Tightens Supply Of Used Vehicles
increased Product Cadence Will Boost New Car Demand
figure 23: Average New Car Showroom Age And Replacement Rate, 2007-16
higher Taxes May Impede Short Term Growth Of Consumer Spending
competitive Context
key Points
declines In Vehicle Use
figure 24: Consumer Vehicle Miles Traveled, All U.s. Roads And Streets, 1998-2012
increased Urbanization Cuts Into Automobile Dependency
figure 25: Most Often Form Of Transit Used For Work Commute, By Metro Area, 2009
figure 26: Attitudes To Transportation By Type Of Commuter, 2009
car Sharing A Potential Disruptive Force To Automobile Ownership
figure 27: Car Use, By Trip Purpose, Average Distance And Time, 2009
Car Buying - US - February 2013

4. leading Manufacturers
key Points
manufacturer Overview
top 10 Automakers Account For 92% Of 2012 Vehicle Sales And 93.4% Of The New Car Dealers
figure 28: Largest Automotive Original Equipment Manufacturers In The U.s., By New Car Market Share,
2012
a Note On The Manufacturer And Dealers Relationship
manufacturer Profiles
general Motors Company
overview
sales And Market Share
service, Parts And Cpo Programs
innovation
captive Lending
ford Motor Company
overview
sales And Market Share
service, Parts And Cpo Programs
captive Lending
toyota Motor Sales Usa, Inc
overview
sales And Market Share
service, Parts And Cpo Programs
captive Financing
environmentalism
chrysler Group, Llc
overview
sales And Market Share
service, Parts And Cpo Programs
captive Lending
american Honda Motor Co. Inc
overview
sales And Market Share
service, Parts And Cpo Programs
commitment To American Jobs
captive Lending
nissan North America Inc.
overview
sales, Service And Market Share
Car Buying - US - February 2013

5. captive Lending
car Dealerships
key Points
dealership Overview
auto Retailing Is A Highly Competitive And Fragmented Market
figure 29: Top 20 Dealership Groups In The U.s., By Total Number Of New Vehicles Sold, 2012
total U.s. New Car Dealership Network Grows For First Time Since 2005
figure 30: Number Of Dealerships Selling New Cars, 2003-12
major Dealership Profiles
carmax
autonation
sonic Automotive
automotive Websites
key Points
automotive Websites Overview
vast Majority Expect To Use The Internet Next Time They Shop For A Car
figure 31: Online Sources Expected To Visit While Car Buying, By Gender, November 2012
one In Five Say Internet Is An Important Resource For Deciding What Car To Purchase Or Lease
figure 32: Sources Of Information Used When Buying A Vehicle—purchased New, By Education,
April 2011-
june 2012
third-party Websites Provide Consumers A Unified Location For Local New/used Car Inventory
figure 33: New & Used Vehicle Buyers Time Spent Online, By Type Of Website, 2011
figure 34: Top 8 Car Buying Websites, By Unique Visitors A Month, May 2011-april 2012
major Automotive Website Profiles
autotrader.com
cars.com
edmunds.com
innovations And Innovators
tred.com Aims To Take The Hassles Out Of Test-driving
figure 35: Tred.com Online Teaser, January 2013
Car Buying - US - February 2013

6. carwoo! Helps Truncate The Car Buying Process Through Reverse Dealer Auctioning
figure 36: Carwoo!’s Homepage, January 2013
lincoln Adds A Personal Touch Through Complimentary Concierge Service
marketing Strategies
key Points
strategy: Use Racing-, Shooter-video Games To Promote Vehicle Launches
figure 37: 2014 Chevrolet Corvette C7 In Gran Turismo 5
figure 38: Jeep Tough Game, Tv Ad, November 2012
strategy: Use Crowdsourcing To Explore And Develop Unique Vehicle Features
figure 39: Dodge Dart Registry
figure 40: Dodge How To Change Buying Cars Forever, Tv Ad, January 2013
strategy: Add A “human Face” To Automotive Regional Ads
figure 41: Chevy Under The Blue Arch
figure 42: Chevy Under The Blue Arch Truck Month, Tv Ad, November 2012
strategy: Use Visually Interesting Special Effects To Highlight New Styling Direction
figure 43: Toyota Avalon New Formula, Tv Ad, January 2013
strategy: Emphasize A Passion For Cars As An Expertise In Car Buying
figure 44: Edmunds.com Ask The Car People, Tv Ad, July 2012
strategy: Show New Car Shoppers That You’re Listening To Their Complaints
figure 45: Toyota Rav4 Wish Granted, Tv Ad, January, 2013
vehicle Ownership And Spend
key Points
midsize Cars And Suvs/cuvs Most Popular Vehicle Segments
figure 46: Vehicle Ownership, Type Of Vehicle By New, Used, Leased, Or Cpo, November 2012
figure 47: Vehicle Ownership, Type Of Vehicle, By Age, November 2012
household Ownership Dominated By Chevrolet, Ford, Toyota, And Honda, But Regional Variances
are Prevalent
figure 48: Make Of Vehicle Owned In Household, Domestic Vs. Foreign, By Region, April 2011-june 2012
average Car Purchase At $19,000
figure 49: Amount Spent On Vehicle Purchase – Most Recently Acquired, By Age, April 2011-june
2012
the Average Household Owns About Two Cars
figure 50: Number Of Vehicles Owned In The Household, By Household Income, April 2011-june 2012
figure 51: Number Of Vehicles Owned In The Household, By Household Size, April 2011-june 2012
nearly A Quarter Of Respondents Expect To Shop For A Car Within The Next Year
figure 52: When Will Next Vehicle Be Bought, By Whether The Most Recently Acquired Vehicle In
Household Is
owned Or Leased, April 2011-june 2012
figure 53: Expectations Of Major Breakdown In The Next 12 Months, By Whether The Most Recently
Car Buying - US - February 2013

7. Acquired
vehicle In Household Is Owned Or Leased, April 2011-june 2012
attitudes Towards Haggling For A Car
key Points
younger Households See Greater Benefit From Haggling With Dealership
figure 54: Attitudes Towards Haggling On Price For A Car, By Age, November 2012
necessity For Haggling Falls As Income Rises
figure 55: Attitudes Towards Haggling On Price For A Car, By Household Income, November 2012
larger Households, And Households With Young Children See Haggling As Necessary And
beneficial
figure 56: Attitudes Towards Haggling On Price For A Car, By Number Of People In Household, November
2012
figure 57: Attitudes Towards Haggling On Price For A Car, By Presence Of Children In Household,
November 2012
time Expected To Spend Shopping For Car
key Points
women Expect To Spend More Time Shopping For Their Next Vehicle
figure 58: Length Of Time Expected To Spend Shopping For Car, By Gender, November 2012
higher Income Householders Spend The Longest Time Shopping For A Car
figure 59: Length Of Time Expected To Spend Shopping For Car, By Household Income, November 2012
younger And Middle-aged Respondents Expect To Spend The Longest Time Shopping For Their Next
car
figure 60: Length Of Time Expected To Spend Shopping For Car, By Age, November 2012
online Car Shopping Resources Expected To Visit
key Points
grouping Classification
average Consumer Expects To Visit Three Types Of Online Resources The Next Time They Car Shop
figure 61: Online Sources Expected To Visit While Car Buying, By New/used/cpo Vehicle Ownership,
November
2012
more Men Than Women Plan To Visit A Classified Ad Website When They Car Shop
figure 62: Online Sources Expected To Visit While Car Buying, By Gender, November 2012
car Manufacturer And Dealer Websites More Likely Visited By Those With Higher Incomes
figure 63: Online Sources Expected To Visit While Car Buying, By Household Income, November 2012
single Person Households Visit More Types Of Online Resources
figure 64: Online Sources Expected To Visit While Car Buying, By Marital/relationship Status, November
2012
Car Buying - US - February 2013

8. one In Five Millennials Expect To Use A Smartphone Or Tablet App The Next Time They Shop For A
car
figure 65: Online Sources Expected To Visit While Car Buying, By Generation, November 2012
people Who Take Longer To Shop For A Car More Likely To Visit Auto Sites
figure 66: Online Sources Expected To Visit While Car Buying, By Length Of Time Expected To Spend
Shopping For
car, November 2012
dealership Features And Accommodations
key Points
younger Consumers More Interested In Convenience Features From Car Dealers
figure 67: Importance Of Selected Dealership Attributes And Services, By Gender, November 2012
figure 68: Importance Of Selected Dealership Attributes And Services, By Gender And Age, November 2012
top Earners Looking For Exclusivity And Style From Car Dealers
figure 69: Importance Of Selected Dealership Attributes And Services, By Household Income, November
2012
swing And Wwii Generation More Interested In Dealers That Are Integral Members Of Area
community
figure 70: Importance Of Selected Dealership Attributes And Services, By Generation, November 2012
new Car Owners Expected To Be More Loyal Than Used Car Owners
figure 71: Importance Of Selected Dealership Attributes And Services, By Vehicle Ownership, November
2012
car Buying Habits And Sentiments
key Points
grouping Classification
most Women Say Buying A Car Is “stressful”
figure 72: Car Buying Habits And Sentiments, By Gender, November 2012
millennials See Importance In Researching Not Just Vehicle Models But Car Dealerships
figure 73: Car Buying Habits And Sentiments, By Generation, November 2012
impact Of Race And Hispanic Origin
key Points
asian Americans Disproportionately Buy Japanese Makes. Blacks Prefer Domestic Makes
figure 74: Make Of Vehicle Owned In Household, Domestic Vs. Foreign, By Race/hispanic Origin, April
2011-june
2012
blacks, Asian And Hispanics Aged 35+ More Likely To Purchase Vehicles Costing $40k-49.9k
figure 75: Amount Spent On Most Recently Acquired Vehicle, By Race/ethnicity And Age, April 2011-june
2012
Car Buying - US - February 2013

9. figure 76: Amount Spent On Most Recently Acquired Vehicle, By Hispanic Origin And Age, April 2011-june
2012
hispanics And Asians Most Likely To View Haggling As Necessary And Beneficial
figure 77: Attitudes Towards Haggling On Price For A Car, By Race/hispanic Origin, November 2012
minorities More Interested In Convenience Features And Financing Options
figure 78: Importance Of Selected Dealership Attributes And Services, By Race/hispanic Origin, November
2012
hispanic Respondents Worried About Getting “ripped-off” By Car Dealers
figure 79: Car Buying Habits And Sentiments, By Race/hispanic Origin, November 2012
cluster Analysis
loyal And Informed
demographics
characteristics
opportunity
frustrated And Lost
demographics
characteristics
opportunity
unstressed And Disengaged
demographics
characteristics
opportunity
environmental And Empowered
demographics
characteristics
opportunity
cluster Characteristic Pie Graph
figure 80: Target Clusters, November 2012
figure 81: How Much Time Expected To Spend Shopping For Car, By Target Clusters, November 2012
figure 82: Online Sources Expected To Visit While Car Buying, By Target Clusters, November 2012
figure 83: Dealership Features And Accommodations That Consumers Want, By Target Clusters, November
2012
figure 84: Car Buying Habits And Sentiments, By Target Clusters, November 2012
cluster Demographic Tables
figure 85: Target Clusters, By Demographic, November 2012
cluster Methodology
appendix: Other Useful Consumer Tables
vehicle Ownership
figure 86: Vehicle Ownership, By Household Income, November 2012
Car Buying - US - February 2013

10. figure 87: Make Of Vehicle Owned In Household, Domestic Vs. Foreign, By Household Income, April
2011-june
2012
figure 88: Whether The Vehicle In Household Is Owned Or Leased—most Recently Acquired, By
Race And
household Income, April 2011-june 2012
figure 89: Whether The Vehicle In Household Is Owned Or Leased – Most Recently Acquired, By
Hispanic Origin
and Household Income, April 2011-june 2012
figure 90: Whether The Vehicle In Household Is Owned Or Leased—most Recently Acquired, By
Education, April
2011-june 2012
figure 91: Whether The Vehicle In Household Is Owned Or Leased—most Recently Acquired, By
Region, April
2011-june 2012
figure 92: Planned To Buy Next Vehicle New Or Used, By Whether The Vehicle In Household Is Owned Or
Leased—
most Recently Acquired, April 2011-june 2012
primary Sources Of Information Used When Buying A Vehicle
figure 93: Sources Of Information Used When Buying A Vehicle—purchased New, By Education,
April 2011-
june 2012
online Sources Used When Car Buying
figure 94: Online Sources Expected To Visit While Car Buying, By Gender, November 2012
figure 95: Online Sources Expected To Visit While Car Buying, By Age, November 2012
figure 96: Online Sources Expected To Visit While Car Buying, By Gender And Marital Status, November
2012
figure 97: Online Sources Expected To Visit While Car Buying, By Education, November 2012
figure 98: Online Sources Expected To Visit While Car Buying, By Attitudes Towards Haggling On Price For
A Car,
november 2012
time Expected To Spend Shopping For Car
figure 99: How Much Time Expected To Spend Shopping For Car, By Education, November 2012
attitudes Towards Haggling For A Car
figure 100: Attitudes Towards Haggling On Price For A Car, By Generation, November 2012
figure 101: Attitudes Towards Haggling On Price For A Car, By Vehicle Ownership, November 2012
attitudes To Dealership Features And Accommodations
figure 102: Importance Of Selected Dealership Attributes And Services, November 2012
figure 103: Importance Of Selected Dealership Attributes And Services, By Age, November 2012
car Buying Habits And Sentiments
figure 104: Car Buying Habits And Sentiments, November 2012
figure 105: Car Buying Habits And Sentiments, By Age, November 2012
figure 106: Car Buying Habits And Sentiments, By Household Income, November 2012
Car Buying - US - February 2013

11. figure 107: Car Buying Habits And Sentiments, By Online Sources Expected To Visit While Car Buying,
November
2012
figure 108: Car Buying Habits And Sentiments, By Online Sources Expected To Visit While Car Buying,
November
2012
figure 109: Car Buying Habits And Sentiments, By Online Sources Expected To Visit While Car Buying,
November
2012
appendix: Trade Associations
appendix: Research Methodology
consumer Research
primary Data Analysis
sampling
global Market Insite (gmi)
secondary Data Analysis
experian Simmons National Consumer Studies
statistical Forecasting
statistical Modelling
qualitative Insight
the Mintel Fan Chart
weather Analogy
appendix: What Is Mintel?
mintel Provides Industry-leading Market Intelligence
mintel Solutions:
mintel Oxygen Reports
mintel Gnpd
mintel Inspire
mintel Beauty Innovation
mintel Menu Insights
mintel Research Consultancy
mintel Comperemedia
About Us:
Transparency Market Research is a market intelligence company providing global business information
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